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Daily Newsletter, Sunday, 07/11/2004

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PremierInvestor.net Newsletter          Weekend Edition 07-11-2004
                                                    section 1 of 3
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment

In section one:

Market Wrap:       Dead Level
Market Sentiment:  Earnings Season Begins
Watch List:        Networking, Chips, Mining, Airlines

=================================================================
MARKET WRAP  (view in courier font for table alignment)
=================================================================
        WE 7-09         WE 7-02         WE 6-25         WE 6-18
DOW    10213.22 - 69.61   10282 - 89.01   10371 - 44.57 +  6.31
Nasdaq  1946.33 - 60.33 2006.66 - 18.81 2025.47 + 38.74 - 13.14
S&P-100  542.63 -  4.54  547.17 -  2.58  549.75 -  5.06 -  0.09
S&P-500 1112.81 - 12.57 1125.38 -  9.05 1134.43 -  0.57 -  1.47
W5000  10842.68 -154.87   10997 - 76.05   11073 + 39.48 - 11.83
SOX      451.14 -  6.17  457.31 - 21.60  478.91 + 25.83 - 23.20
RUT      563.73 - 18.99  582.72 -  4.98  587.70 + 17.16 +  1.42
TRAN    3087.97 - 58.20 3146.17 - 18.01 3164.18 + 95.61 + 43.96
WE = week ending
=================================================================

===========================
Market Wrap
===========================

Dead Level
by Jim Brown

After a little more than six months of the year has expired
the S&P-500 is trading exactly where it closed 2003 at 1112.
Six months of hope, excitement, surprise and disappointment
and we have gone nowhere. Of course that is not exactly
correct with the highs and lows well away from 1112 but we
continue to return to this level. We have spent more time
above this level with the high for the year at 1163 and
+51 points above Friday's close. We have twice ventured
lower by up to -36 points to 1076. This is a perfect picture
of a range bound market and the reason so many traders are
frustrated and volume is dwindling. Everybody is waiting
for the market to pick a direction and nobody is trading
to give it a direction.

Dow Chart - Daily


Nasdaq Chart - Daily


SPX - Daily


SPX - Weekly



The other indexes are not quite as level as the S&P. The
Dow closed at 10213 about -240 points below its 2003 close
at 10453. The Nasdaq closed today at 1946 and -57 points
below the 2003 close at 2003. The broadest measure of the
market the Wilshire-5000 is actually showing a +43 point
gain from the 2003 close at 10799. I actually believe
that the ability of the markets to hold at these levels
is positive considering the long rally off the 2003 lows.
While it may be positive to consolidate at these high
levels, consolidation is never exciting.

Volume on Friday failed to reach 3B shares across all
markets despite strong earnings comments from GE, the
largest company and the proxy for our economy. Internals
were better and all the indexes finished in the green
but excitement was still missing.

The biggest company in the Dow announced earnings before
the bell on Friday and beat the street by a penny. The
beat was not as important as the comments by GE's Jeff
Immelt that "this was the best economy we have seen in
years." Those are strong words from Jeff and they backed
it up by narrowing their guidance for the year to $1.55
to $1.60. They again said that 2005 should put GE back
on track for double digit revenue growth. Of course they
have said this for the last couple of years to no avail.
Nine of eleven divisions posted gains last quarter but
GE still posted overall earnings that were not exciting.
The 38 cents included a favorable tax ruling and it
was the same 38 cents they earned in Q2-2003. Revenue
grew +11% (+$1.05B) illustrating the challenge to grow
earnings despite a billion in additional revenue. The
expectations for GE were already muted so reaction to
the news was positive but calm. GE stock gained only
+0.47 cents and Dow component MMM another diverse
manufacturer actually lost ground.

Still the Immelt comments rescued the markets from the
depths of despair and brought them back from the cliff.
The Dow gained +41 to close at 10213 and back over its
200dma at 10175. The Nasdaq gained +11 to close at
1945 and traded flat for the day.

The only economics came from the Wholesale Trade report
and the news was mixed again. May sales rose only +0.5%
compared to +0.9% in April. Inventories however shot up
+1.2% and well over the +0.2% in April. Durable Goods
sales rose only +0.1% with DG inventories jumping +1.5%.
One analyst said this divergence in durable goods was
the worst in over four years. Inventories rarely shoot
up this quickly compared to sales due to much better
computerized inventory management and just in time
ordering. A jump of this magnitude suggests sales came
to a screeching halt in May. This also suggests the June
swoon we have seen in consumer numbers may have been
stronger then we first expected.

I got a kick listening to the talking heads this week
as they constantly tried to figure out what happened
in June to keep not only consumers but also corporations
from making big purchases. Hello, George McFly? I wanted
to bang on the TV screen and remind them of the Iraq
turnover which many were saying would be a bloodbath
both in Iraq and with corresponding terrorist attacks
here and abroad. I wanted to shout Fed meeting and
rate hike to every one that claimed traders could not
understand why corporations deferred purchases of
software and hardware in June. With the Fed talking
of aggressive hikes if needed I am sure more than
one CFO decided to wait for the picture to clear.

Consumers were hit with the highest gas prices in
history in the U.S. and analysts can't understand why
SUV sales died? Makes you wonder what they pay those
experts. Speaking of gasoline, oil prices surged over
$40 again on Friday on fears that Yukos would halt
production to gain some leverage with the Russian
government in the fight currently underway. Yukos
exports 1.8 million barrels per day and that would be
a serious crunch in the supply line. I would not worry
about a work stoppage because that oil flow is worth
$720 million per day and that will go a long way toward
paying their $3 billion tax bill. Still oil closed at
$40 and the short squeeze is on again. It will not be
long now before companies start warning on earnings
due to higher energy prices. $40 oil is a drastically
increased expense for almost any manufacturer.
Transports gave up some gains early but strengthened
late in the day as oil ticked back under $40 by a
nickel.

For once the earnings news was not all negative. Computer
Associates affirmed estimates as did SAP. Considering the
carnage in the software sector this was a breath of fresh
air for the embattled techs. Spoiling that breath was
Unisys which warned that server sales had slowed in the
last month earnings would drop to 2-3 cents per share
below analysts estimates. The stock was killed far in
excess of their warning with a -$2 drop to $11. The
problem was the appearance that hardware sales might
have stalled in June just as software sales did.
Everyone works on the end of quarter stuff the channel
sales principle where quotas are made or broken in the
last week of the quarter. If Unisys hardware sales were
deferred then what about IBM, Dell, Hewlett Packard
and the rest of the herd?

The Computer Associates earnings affirmation was not
without its problems. CA said revenue would be light
due to weakness in its services business and an
unfavorable product mix. Affirming earnings in spite
of the lower revenue saved them from the same fate as
Unisys.

With nearly 300 companies reporting earnings next week
we have to hope that the majority of them repeat the
GE claims and talk excitedly about the future. The
problem will occur if they all pull a Yahoo instead.
Yahoo did not warn but only failed to impress. The
expectations were simply way too high and investors
hoping for a blowout ran for the exits when it did not
appear. Inline earnings are never met with excitement.
Inline means fairly valued and no upside to the majority
of investors. It means find another horse to ride for
the next earnings race.

Earnings start off with a whimper on Monday with only
16 companies headlined by NVLS and EFII. Tuesday picks
up the pace with about 50 reports led by INTC, JNPR and
JNJ. Wednesday has AMD, AAPL, ASML, BAC, GENZ, HDI, MTG,
QLGC, SNDK, and a flood of smaller companies. Thursday
is the big day headed by IBM, PMCS, NOK, C, RMBS, CY
and about 100 others.

Before the week is out we should know how the quarter
will turn out. The estimates have dropped to +19.4% for
the S&P, down from +26% a couple weeks ago and up from
+14.6% back in April. We have had a significant ramp
from those April estimates and that ramp is rapidly
evaporating but still strong. We should have a decent
clue by next Friday what the real number will be. +19%
would be great and should please the markets but as we
all know the guidance is the key. I strongly doubt the
software sector was alone in its sales slump. It simply
does not make sense that software would slump without
a corresponding dip in hardware. So far Unisys is the
only company of note that has mentioned soft server
sales. It will all come to a head next week and our
fate will be known.

Next week is also expiration week. As if we did not
have enough to worry about we will be dealing with
volatility related to an expiration week right in the
middle of a critical earnings cycle. We really had very
little volatility over the last week as it appears
traders are holding their cards close until the last
minute while hoping for an earnings move. That suggests
we could see an increase in volatility as the earnings
begin to flow. With Intel announcing on Tuesday this
should make Wednesday option dump day as the market
reacts to the Intel news. Right or wrong on direction
those options will be losing value with every tick and
volume should be huge.

Martha lost her last appeal on Friday and she is
scheduled to be sentenced on Friday and the betting
line is 10-16 months in prison. MSO dropped to its
lowest level since May-21st on the news and closed at
$8.63.

Our economic cycle also ramps up next week with several
Fed manufacturing surveys and the return of the much
watched PPI/CPI inflation gauges. Where the last
week of June was on hold for coming events the next
week in July should be anything but slow. There is a
lot of pent up trading on both sides of the market and
it could break lose with a vengeance next week. The
warm up acts are over and the curtain is about to rise
on the main performance. How it ends is still unknown
but at least the end is near and the waiting is almost
over.

It is amazing to see how the markets always gravitate
to a critical inflection point just before an event
that could produce a strong move. The Dow has settled
at 10200 for the last four days and refuses to move
lower, or higher for that matter. The one lower close
on Thursday was immediately retraced on Friday with
the GE news. The 200dma rose to 10178 and is providing
support while we wait for earnings. This is actually
bullish as positive news now has a strong launch point
and we are not that far away from the recent highs just
below 10500. We have had a week of consolidation of
gains in front of the earnings cycle. The Dow is
patiently waiting for the answer right in the middle
of 10000-10500 range that has held more or less for
three months.

The Nasdaq tried to hold at 1960 range support but the
warnings on Thursday knocked another 20 points off that
level. We have been stuck in traffic just above 1940
for two days now. The SOX has actually recovered the
450 support level only two days ahead of Intel earnings.
The Russell held on to 560 and 200dma support and
managed to close slightly higher in front of weekend
event risk. This was a positive sign for me.

Russell Chart - Daily



All of these factors suggest there are buyers lurking
at what they perceive to be a favorable risk level at
the bottom of our range. The lack of any material
selling over the last couple days despite the negative
sentiment is bullish. This was a perfect opportunity
for support to fail and investors to dump stock in
fear and it did not happen. Volume on Tue/Wed/Thr
was strong for a summer week and internals were very
negative and the market did not crack. This does not
mean we will not move lower if the earnings are a
disappointment but it means there is still hope.
Keep the faith for one more week and the picture
should be much clearer. Intel is the lightning rod
for the market on Tuesday. Try not to stand too close.

Enter Very Passively, Exit Very Aggressively!

Jim Brown


================================================
Market Sentiment
================================================

Earnings Season Begins
- J. Brown

The markets bounced on Friday when Dow-component General Electric
(GE), the world's largest company by market cap, beat earnings
estimates by a penny.  Comments from Jeff Immelt, GE's Chairman
and CEO, briefly lifted investor sentiment when he said the
economy is the best he's seen in years.  Overall the markets were
due for a bounce with the vast majority of sector-specific
indices all significantly oversold.  The rebound happened to
produce some bullish market internals with advancing stocks
outnumbering decliners 17 to 10 on the NYSE and 17 to 12 on the
NASDAQ.  Up volume outweighed down volume but overall volume
remained light.

The problem is that Friday's bounce did not do much to erase the
losses or repair the technical damage done in the last week or so
and investor confidence remains shot with the daily parade of
earnings warnings.  Next week's long awaited Q2 earnings season
will hit full swing but odds are we could see more "sell the
news" reaction as companies fail to issue positive guidance for
the third quarter.

The combination of oil back to $40 a barrel, the upcoming
terrorist targets.. I mean Democratic and Republican conventions,
and fears of a major event at the August Olympics could easily
keep a lid on stocks.  Although the biggest wet blanket on the
markets is probably the upcoming, anybody's-guess presidential
election.

There is hope that stocks could turn around late in the week with
the large number of economic reports due out to hit Wall Street.
That's assuming they can offer some positive numbers and not
depress us further with concerns that the U.S. economy is
slowing.  Speaking of slowing I heard that the Chinese GDP
numbers might be released this coming week and it could be the
first report since the Chinese government actively tried to slow
down GDP growth before their economy overheated.  That could be a
wild card for cyclical stocks.



-----------------------------------------------------------------

Market Averages

DJIA ($INDU)

52-week High: 10753
52-week Low :  8996
Current     : 10213

Moving Averages:
(Simple)

 10-dma: 10288
 50-dma: 10229
200-dma: 10181



S&P 500 ($SPX)

52-week High: 1163
52-week Low :  960
Current     : 1112

Moving Averages:
(Simple)

 10-dma: 1125
 50-dma: 1117
200-dma: 1101



Nasdaq-100 ($NDX)

52-week High: 1559
52-week Low : 1204
Current     : 1440

Moving Averages:
(Simple)

 10-dma: 1475
 50-dma: 1448
200-dma: 1444



-----------------------------------------------------------------

CBOE Market Volatility Index (VIX) = 15.75 -0.42
CBOE Mkt Volatility old VIX  (VXO) = 15.42 -0.63
Nasdaq Volatility Index (VXN)      = 22.35 -0.33

-----------------------------------------------------------------

          Put/Call Ratio  Call Volume   Put Volume

Total          0.75        614,062       457,710
Equity Only    0.67        468,279       315,317
OEX            1.01         27,847        28,147
QQQ            1.56         45,390        47,685


-----------------------------------------------------------------

Bullish Percent Data

           Current   Change   Status
NYSE          66.0    + 0     Bear Confirmed
NASDAQ-100    48.0    - 1     BULL ALERT
Dow Indust.   70.0    + 0     Bear Confirmed
S&P 500       62.8    + 0     Bear CORRECTION
S&P 100       65.0    + 0     Bear CORRECTION



Bullish percent measures the number of stocks in an index
currently trading on a buy signal on their point and figure
chart.  Readings above 70 are considered overbought, and readings
below 30 are considered oversold.

Bull Confirmed  - Aggressively long
Bull Alert      - Cautiously long
Bull Correction - Pause or pullback in upward trend
Bear Alert      - Take defensive action if long
Bear Confirmed  - High risk if long, good conditions for shorting
Bear Correction - Pause or rebound in downtrend


-----------------------------------------------------------------

 5-dma: 1.82
10-dma: 1.54
21-dma: 1.27
55-dma: 1.12


Extreme readings above 1.5 are bullish, and readings below .85
are bearish.  These signals don't occur often and tend be early,
but when they do, they can signal significant market turning
points.


-----------------------------------------------------------------

Market Internals

            -NYSE-   -NASDAQ-
Advancers    1728      1718
Decliners    1026      1247

New Highs      84        37
New Lows       43        94

Up Volume    846M      958M
Down Vol.    516M      371M

Total Vol.  1406M     1367M
M = millions


-----------------------------------------------------------------

Commitments Of Traders Report: 07/06/04

Weekly COT report discloses positions held by small specs
and commercial traders of index futures contracts at the
Chicago Mercantile Exchange and Chicago Board of Trade. COT data
can be found at www.cftc.gov.

Small specs are the general trading public with commercials being
financial institutions. Commercials are historically on the
correct side of future trend changes while small specs tend
to be wrong.

S&P 500

Commercial traders continue to sit tight without much change
in their bearish sentiment.  Retail traders aren't changing
their bullish tune much either but they have grown a bit more
optimistic

Commercials   Long      Short      Net     % Of OI
06/15/04      428,905   444,197   (15,292)   (1.8%)
06/22/04      407,842   415,462   ( 7,620)   (0.9%)
06/29/04      405,273   413,351   ( 8,078)   (0.9%)
07/06/04      402,952   416,526   (13,574)   (1.7%)

Most bearish reading of the year: (111,956) -  3/06/02
Most bullish reading of the year:   23,977  - 12/09/03

Small Traders Long      Short      Net     % of OI
06/15/04      169,595   115,336    54,259    19.0%
06/22/04      124,985    89,934    35,051    16.3%
06/29/04      129,978    94,535    35,443    15.7%
07/06/04      132,423    90,748    41,675    18.7%

Most bearish reading of the year:  (1,657)- 5/27/03
Most bullish reading of the year: 114,510 - 3/26/02


E-MINI S&P 500

Now we are seeing some money shuffling in the e-minis.
Commercial traders have reduced their shorts and raised their
long positions but remain overwhelmingly bearish.  Small traders
have pared back their bullish sentiment.

Commercials   Long      Short      Net     % Of OI
06/15/04      440,867   522,546    (81,679)   (8.5%)
06/22/04      229,290   446,974   (217,684)  (32.2%)
06/29/04      258,443   447,505   (189,062)  (26.7%)
07/06/04      287,442   423,583   (136,141)  (19.1%)

Most bearish reading of the year: (354,835)  - 06/17/03
Most bullish reading of the year:  133,299   - 09/02/03

Small Traders Long      Short      Net     % of OI
06/15/04      216,759    147,247    69,512    19.1%
06/22/04      243,444     58,389   185,055    61.3%
06/29/04      236,492     47,780   188,712    66.3%
07/06/04      219,321     58,567   160,754    27.9%

Most bearish reading of the year: (77,385)  - 09/02/03
Most bullish reading of the year: 449,310   - 06/10/03


NASDAQ-100

Commercial traders remain somewhat bullish on the NASDAQ 100
but only by a small margin.  Small traders are much more
bearish on technology.

Commercials   Long      Short      Net     % of OI
06/15/04       78,542     54,341    24,201   18.2%
06/22/04       40,397     37,413     2,984    3.8%
06/29/04       41,078     37,194     3,884    4.9%
07/06/04       42,245     37,343     4,902    6.2%

Most bearish reading of the year: (21,858)  - 08/26/03
Most bullish reading of the year:  25,160   - 06/01/04

Small Traders  Long     Short      Net     % of OI
06/15/04       15,794    35,880   (20,086)  (38.9%)
06/22/04        9,311     9,950      (639)  ( 3.3%)
06/29/04        7,437    11,904    (4,467)  (23.1%)
07/06/04        9,345    16,527    (7,182)  (27.8%)

Most bearish reading of the year: (20,270) - 06/01/04
Most bullish reading of the year:  19,088  - 01/21/02

DOW JONES INDUSTRIAL

Commercial traders continue to snooze with little change
in their Dow Jones Industrials positions.  Small traders
have reduced their bearish attitude some but remain
negative.

Commercials   Long      Short      Net     % of OI
06/15/04       30,438    24,766    5,672      10.3%
06/22/04       26,808    19,752    7,056      15.2%
06/29/04       27,278    20,512    6,766      14.1%
07/06/04       27,214    20,775    6,439      13.4%

Most bearish reading of the year: (8,322) -  1/16/01
Most bullish reading of the year: 15,135  - 10/16/01

Small Traders  Long      Short     Net     % of OI
06/15/04       13,942    20,953   (7,011)   (20.1%)
06/22/04        5,626     7,798   (2,172)   (16.2%)
06/29/04        4,930     7,682   (2,752)   (21.8%)
07/06/04        5,969     8,227   (2,258)   (15.9%)

Most bearish reading of the year: (12,106) -  3/09/04
Most bullish reading of the year:   8,523  -  8/26/03

-----------------------------------------------------------------


==================================================================
WATCH LIST
==================================================================

The PremierInvestor.net watch list is not designed to be read
as full fledged stock picks.  Rather we would prefer to offer
it as an extra tool in today's investor toolbox.  Think of it
as a radar screen with your own radar operator pointing out
interesting developments, technical patterns or potential plays
that you may or may not have seen on your own.  Due to time
constraints we do glance at the news but rarely do we have
time to fully read pertinent news stories, due background
research and other necessary screens that investors should do
before making a decision.  A common exercise is to read the
entry, glance at the sector and other stocks in that industry
and then compare what's happening in the stock to what's
happening in the broader market indices.  We hope you enjoy
the Watch List and that it proves to be a useful tool for your
own trading success.

STOCKS WORTH WATCHING
---------------------------------

Networking, Chips, Mining, Airlines

Blue Coat Systems - BCSI - close: 26.52 change: +0.60

WHAT TO WATCH: Keep an eye on BCSI for a failed rally under
$28.00 or a breakdown below support at the $25.00 mark.  Shares
of this computer networker recently broke support at the $30.00
mark and its simple 200-dma.  Its MACD has produced a new sell
signal and shares look vulnerable to the $20.00 level.  Earnings
are expected in August.




---

PMC Sierra - PMCS - close: 12.08 change: +0.26

WHAT TO WATCH: Hmmm... the SOX semiconductor index has produced a
decent oversold bounce from its big decline but shares of PMCS
are not bouncing with it. Instead PMCS is consolidating sideways
near support at the $12.00 level.  Traders might want to consider
bearish plays on a drop through the $11.75 level but watch out
for earnings expected on July 15th.




---

Inco Ltd - N - close: 35.60 change: +1.21

WHAT TO WATCH: We were very tempted to add Inco to the bullish
play list this weekend.  The recent sideways consolidation has
blossomed into a breakout above the $35.50 level.  Fundamentally
Inco is benefiting from the rising demand for metals and the
stock has been rising with the mining industry.  What kept us
back was the bearish P&F chart and the company's upcoming
earnings report on July 20th.




---

ExpressJet Holdings - XJT - close: 11.12 change: -0.27

WHAT TO WATCH: The airline stocks have been hit with a double-
whammy this week.  The sudden rise in crude oil affects its fuel
costs while the renewed focus on terrorist activities also raises
concerns over air travel.  The XAL broke down through its 40 and
50-dma's this past week and XJT broke down through support at
$11.50 to hit new one-year lows.  We would consider XJT a strong
bearish candidate but earnings are due out on July 20th and we
don't want to hold over the event.





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DISCLAIMER
=================================================================

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only. The information provided herein is not to be construed
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newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
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PremierInvestor.net Newsletter          Weekend Edition 07-11-2004
                                                    section 2 of 3
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment

In section two:

Tech Stocks
  Bearish Play Updates:  ASKJ, BORL, QLGC
  Closed Bearish Plays:  DPMI

Active Trader (Non-tech)
  New Bearish Plays:     FRED
  Bullish Play Updates:  KCS, SHW, SWC


High Risk/Reward
  New Bearish Plays:     FLML
  Bearish Play Updates:  IMOS, SOHU, VISG


==================================================================
Net Bulls (NB) Tech Stock section
==================================================================

============
PLAY UPDATES
============


  --------------------
  Bearish Play Updates
  --------------------

Ask Jeeves - ASKJ - close: 32.38 change: +0.79 stop: 33.01*new*

We expected the gap down on Thursday but it missed our original
entry point.  We altered our entry on Thursday and now we're
changing our stop loss.  The $33.00 level should be new short-
term resistance as part of the bottom of the gap down.  Our new
stop will be $33.01.  Momentum traders may want to wait for a
drop through the $31.00 level before initiating new positions.
We will maintain our target at the $27.50 level, near its 200-
dma.

!Alert! ASKJ is liable to be volatile and thus carries a higher
degree of risk.  Use caution.

Annotated Chart:



Picked on July 08 at $31.59
Gain since picked:   + 0.79
Earnings Date      07/28/04 (confirmed)
Average Daily Volume:   3.9 million



--

Borland Software - BORL - close: 7.31 change: +0.12 stop: 7.83

The software sector has been crushed in the last several sessions
by a series of earnings warnings.  BORL has fallen through
several layers of support in the process.  The stock is down more
than 7.5percent from our picked price so more conservative
traders may want to consider taking profits.  We're holding out
for a drop towards the $6.50 region or until BORL's July 22nd
earnings report, which comes first.  Conservative traders may
want to tighten stop to just above the $7.50 level. New positions
might still be considered but be aware that BORL is oversold and
due for a bounce.

Annotated Chart:



Picked on July 04 at $ 7.91
Gain since picked:   - 0.60
Earnings Date      07/22/04 (confirmed)
Average Daily Volume:   672 thousand



---

QLogic Corp. - QLGC - close: 25.75 change: +0.39 stop: 26.51 *new*

Time is running out.  The semiconductor sector has been hit hard
in the past two weeks but the SOX has managed a three-day
oversold bounce.  Likewise QLGC is trying to rebound from the
$25.00 level.  We're running out of time because QLGC is due to
report earnings after the bell on Wednesday, July 14th.  We are
NOT suggesting new positions in this play and we'll be closing it
on Tuesday afternoon.  In the meantime we will lower our stop
loss to $26.51 to reduce our risk.

Annotated Chart:



Picked on June 20th at $25.57
Change since picked     +0.18
Earnings Date        07/14/04 (confirmed)
Average Daily Volume =   4.19 mln




============
CLOSED PLAYS
============


  --------------------
  Closed Bearish Plays
  --------------------

DuPont Photomasks - DPMI close: 18.24 change: +0.29 stop: 19.51

Rumors that DPMI might issue an earnings warning sent the stock
plummeting toward our target at $16.50 four days ago.
Unfortunately the stock hit $16.52 and rebounded sharply higher.
Smith Barney tried to defend the stock and said such concerns
were not very likely.  Since then DPMI has been consolidating
sideways in a relatively tight range under $18.50.  The chip
sector remains weak and DPMI could easily turn lower again but
we're a little concerned about the "hammer" candlestick on the
stock's weekly chart.  Normally a "hammer" is a one-candle
reversal signal.  More aggressive traders willing to keep the
play open might want to tighten their stop down to $19.01 or even
$18.51.

Picked on July 4th at $18.85
Change since picked   - 0.61
Earnings Date       07/21/04 (confirmed)
Average Daily Volume =   238 K




==================================================================
Stock Bottom / Active Trader (AT) section
==================================================================

=========
NEW PLAYS
=========

  -----------------
  New Bearish Plays
  -----------------

Fred's Inc - FRED - close: 20.21 change: -0.11 stop: 21.51

Company Description:
Fred's, Inc. operates 550 discount general merchandise stores
mainly in the southeastern United States, including 26 franchised
Fred's stores. (source: company press release)

Why We Like It:
We like FRED as a short play because the retail sector has been
weak for two weeks and investors are ignoring positive news from
FRED.  Retailers have been complaining about the weather as a
reason for their lousy June sales, not to mention higher gasoline
prices at the pump weighing on their customers' discretionary
spending habits.  Earnings warning from Wal-Mart and Target, who
both guided to the low end of their forecasts for July, have left
the retail sector without any leadership.  Meanwhile traders are
choosing to ignore positive news from FRED who announced June
sales were up 14% and same-store sales rose 4.8%, which was
better than the estimates.

However, it is noteworthy that the RLX retail index has paused at
technical support with its simple 200-dma.  Likewise FRED, while
under all of its significant moving averages, has paused its
descent at the psychological, round-number $20.00 mark.  We are
going to use a TRIGGER at $19.99 to open the play for us.  Until
FRED trades at or below our trigger we'll be happy to sit on the
sidelines.  We will target a drop to the $17.50 level with an
initial stop loss at $21.51.  P&F chart readers will note the
bearish vertical count actually points to a $15.00 target.

Annotated Chart:



Picked on July xx at $00.00 <-- See TRIGGER
Gain since picked:   + 0.00
Earnings Date      08/19/04 (unconfirmed)
Average Daily Volume:   924 thousand




============
PLAY UPDATES
============

  --------------------
  Bullish Play Updates
  --------------------

KCS Energy - KCS - close: 14.38 change: +0.53 stop: 12.99 *new*

So far so good.  KCS is our slow-moving energy stock, which we
expect to patiently climb toward the $16.00 level.  The rise in
crude oil hasn't hurt us none and the strength in the OIX and OSX
doesn't hurt either.  Technical traders may note the narrow
rising channel.  Readers can look for dips to the simple 10-dma
as support and entry points.  We're going to raise our stop loss
to $12.99.  More conservative traders might be able to get away
with a stop loss near $13.50.

Annotated Chart:



Picked on July 04 at $13.64
Gain since picked:   + 0.74
Earnings Date      05/05/04 (confirmed)
Average Daily Volume:   562 thousand



--

Sherwin Williams - SHW - close: 40.65 change: +0.65 stop: 39.99

It doesn't get much closer than that!  The broader market indices
were beset with weakness this past week and SHW slipped with them
toward support at $40.00.  That support held and shares actually
dipped to the $40.00 mark and closed there on Thursday.  We felt
that odds of us being stopped out at $39.99 on Friday were pretty
high yet SHW bounced.  We probably wouldn't suggest new plays at
this time but the bounce from $40.00 is tempting.  Earnings are
just less than two weeks away and we'd like to see a rally toward
the $43.00 levels to close the play.

Annotated Chart:



Picked on June 20 at $39.96
Gain since picked:   + 0.69
Earnings Date      07/22/04 (confirmed)
Average Daily Volume:   777 thousand



---

Stillwater Mining Co - SWC - close: 16.04 chg: -0.36 stop: 14.95

Uh-oh!  We're right back where we started in SWC.  The stock hit
a new 2 1/2 month high on Thursday as gold short toward the
$410/ounce level and the XAU broke through the 91 level.  On
Friday gold stalled its advance and several mining stocks slipped
backwards in profit taking ahead of the weekend.  We're
encouraged by the small gain in the XAU index on Friday because
it closed near its high for the session right on its simple 100-
dma. Looking ahead we wouldn't be surprised to see gold futures
consolidate a little bit next week and that means SWC could
follow it with a dip back towards the $15.50 level.  Bulls can
look for a bounce from $15.50 as a new entry point.


Annotated Chart:



Picked on July 07 at $16.05
Gain since picked:   - 0.01
Earnings Date      07/30/04 (unconfirmed)
Average Daily Volume:   630 thousand




==================================================================
HIGH RISK/HIGH REWARD (HR) section
==================================================================

=========
NEW PLAYS
=========


  -----------------
  New Bearish Plays
  -----------------

Flamel Technologies - FLML - cls: 20.83 chg: +0.23 stop: 23.06

Company Description:
Flamel Technologies S.A. is a biopharmaceutical company
principally engaged in the development of two unique polymer-
based delivery technologies for medical applications. Micropump.
is a controlled release technology for the oral administration of
small molecule drugs. Flamel's Medusa. nano-encapsulation
technology is designed to deliver therapeutic proteins. Flamel's
expertise in polymer science has also been instrumental in the
development of a photochromic eyeglass lens product now marketed
by Corning Inc.  (source: company press release)

Why We Like It:
Before we go any further let us reiterate that this is a high
risk/reward play.  Any time one plays a biotech stock there
opportunity for risk is greater than normal.  We feel the same
holds true for a biotech/nanotechnology play like FLML.
Fortunately, our reason for FLML is simple.  The stock has
produced a massive technical breakdown on five times it average
volume.  We noticed the drop on Thursday and added FLML to the PI
watch list.  There was a small oversold rebound on Friday but
that was to be expected.  The Point & Figure chart looks very
bearish with an eight-point breakdown and a $12.00 target.

We see two ways to play FLML.  Traders can look for a bounce and
a failed rally toward and under old support-now new resistance at
$23.00.  Or traders can look for a momentum entry on a drop
through the $20.00 mark or the recent low at $19.58.  We're going
to initiate a hypothetical play now with a wide stop above $23.00
(again: broken support should become new resistance).  We're
going to target a drop to the $16-15 region.

Annotated Chart:



Picked on July 11 at $20.83
Gain since picked:   - 0.00
Earnings Date      07/29/04 (unconfirmed)
Average Daily Volume:   536 thousand




============
PLAY UPDATES
============


  --------------------
  Bearish Play Updates
  --------------------

ChimMOS Tech. - IMOS - close: 6.35 change: -0.27 stop: 8.00

We were triggered at $6.50 on Wednesday's 8.5 percent decline.
Volume was three times the average indicating serious selling
pressure and conviction by investors.  Since then we've seen IMOS
bounce a bit but that's to be expected given how oversold the
stock was.  The next challenge for the bears is support in the
$6.25-6.00 range.  A breakdown at the $6.00 mark and it could be
a free fall to the $4.50 level.  Our initial target was a drop to
$4.00 (compared to the bearish P&F target at $2.50) but we'd
probably consider exiting the play on decline to the $4.50-5.00
range.  Keep a close eye on the SOX.  The Semiconductor has
bounced in the last three days from its steep declines and could
be building a bear flag.  Our stop is very wide at $8.00 and more
conservative traders might consider placing their stop near
$7.50.

Annotated Chart:



Picked on July 07th at $6.50
Change since picked   - 0.15
Earnings Date        5/14/04 (confirmed)
Average Daily Volume =   322 K



--

Sohu.com - SOHU - close: 16.01 change: -0.11 stop: 16.76 *new*

Heads up!  We've been updating the stop loss on SOHU all week
long as the stock continued to sink.  Currently SOHU has lost
about 24 percent from the price picked back on June 20th.  The
most recent bout of weakness has been fueled by various
downgrades to the Internet sector, the investor disappointment
over YHOO's earnings, and more importantly a revenue warning from
fellow Chinese-Internet NTES.  SOHU has hit our original profit
target at $16.00 multiple times and we continue to suggest
readers take profits/money off the table.  We're encouraged by
the failed rally at $16.76 on Friday and believe SOHU should be
able to hit our new official exit point at $15.25 quickly next
week.  In the mean time we are lowering our stop to $16.76 and we
do not suggest new bearish plays at this time.

Annotated Chart:




Picked on June 20 at $21.14
Gain since picked:   - 5.13
Earnings Date      07/28/04 (confirmed)
Average Daily Volume:   3.0 million



--

Viisage Technology - VISG - close: 7.30 chg: +0.05 stop: 8.01*new*

The software sector has been pummeled in recent days as investors
reacted to a series of earnings warnings.  The news wasn't lost
on VISG traders and the stock sank appropriately.  We were
triggered on Tuesday at $7.95 when the stock dropped 5.5 percent.
Since then VISG has continued to produce a stream of lower highs.
Shares are obviously very oversold and new positions would be
hazardous a current levels.  Bears might want to consider a
failed rally under the $8.00 level.  Speaking of the $8.00 level
we're going to lower our stop loss to $8.01.  The next challenge
for the shorts is support at the $7.00 mark, which coincides with
support on the P&F chart.  Fortunately, the P&F chart also shows
a new triple-bottom breakdown sell signal with a $3.00 target.
More conservative traders may want to consider exiting for a
profit near the $7.00 level.  We're going to adjust our initial
target from the 200-dma (6.32) to the $6.50 level.

Annotated Chart:



Picked on July 06 at $ 7.95
Gain since picked:   - 0.65
Earnings Date      00/00/00 (unconfirmed)
Average Daily Volume:   2.4 million




=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

Please read our disclaimer at:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

*****************************************************************
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Newsletter, or any Premier Investor Network newsletter please
contact Contact Support.

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Copyright (c) 2001-2004  PremierInvestor.net. and
The Premier Investor Network.
Do not duplicate or redistribute in any form.


PremierInvestor.net Newsletter          Weekend Edition 07-11-2004
                                                    section 3 of 3
Copyright (c) 2004, All rights reserved.
Redistribution in any form is strictly prohibited.

The entire newsletter is best viewed in COURIER 10 for alignment
=================================================================

In section three:

Market Watch for Week of July 12th, 2004
   - Major Earnings
   - Stock Splits
   - Economic Reports

Trading Ideas
  Value Plays With Bullish Signals
  Breakout to Upside (Stocks $5 to $20)
  Breakout to Upside (Stocks over $20)
  Breakout to Downside (Stocks over $20)
  Recently Overbought With Bearish Signals (Stocks over $20)


=================================================================

==========================================
Market Watch for the week of July 12th
==========================================

-----------------
Earnings Calendar
-----------------

Symbol  Co               Date           Comment      EPS Est

------------------------- MONDAY -------------------------------

ARA    ARACRUZ CELULOSE S  Mon, Jul 12    -----N/A-----      0.70
BRO    Brown & Brown       Mon, Jul 12    After the Bell     0.45
CTAS   Cintas Corp         Mon, Jul 12    After the Bell     0.41
EFII   Elec for Imaging    Mon, Jul 12    -----N/A-----      0.24
HELE   Helen of Troy Ltd   Mon, Jul 12    Before the Bell    0.45
MTB    M&T Bank Corp       Mon, Jul 12    Before the Bell    1.45
MDC    M.D.C Holdings      Mon, Jul 12    After the Bell     1.93
NVLS   Novellus Sys, Inc.  Mon, Jul 12    -----N/A-----      0.26
STI    SunTrust            Mon, Jul 12    Before the Bell    1.26

------------------------- TUESDAY ------------------------------

ADTN   ADTRAN, Inc.        Tue, Jul 13    Before the Bell    0.26
AMB    AMB Property Corp   Tue, Jul 13    After the Bell     0.53
ASO    AmSouth BanCorp     Tue, Jul 13    -----N/A-----      0.46
BBT    BB&T Corp           Tue, Jul 13    Before the Bell    0.68
CBH    Commerce Bancorp    Tue, Jul 13    Before the Bell    0.78
CBSH   Commerce Bancshares Tue, Jul 13    Before the Bell    0.75
GCI    Gannett             Tue, Jul 13    Before the Bell    1.30
INTC   Intel Corp          Tue, Jul 13    After the Bell     0.27
JEF    Jefferies Grp       Tue, Jul 13    Before the Bell    0.46
JNJ    Johnson & Johnson   Tue, Jul 13    -----N/A-----      0.79
JNPR   Juniper Networks    Tue, Jul 13    After the Bell     0.04
MI     Marshall & Ilsley   Tue, Jul 13    Before the Bell    0.66
MEG    Media General       Tue, Jul 13    Before the Bell    0.84
PKX    POSCO               Tue, Jul 13    -----N/A-----       N/A
RJF    Raymond James       Tue, Jul 13    -----N/A-----      0.48
PHG    Royal Philips Elec  Tue, Jul 13    -----N/A-----       N/A
STT    State Street Corp   Tue, Jul 13    Before the Bell    0.68
TSCO   Tractor Supply Co   Tue, Jul 13    Before the Bell    0.75
YUM    Yum! Brands, Inc.   Tue, Jul 13    After the Bell     0.52

------------------------ WEDNESDAY -----------------------------

AMD    Adv Micro Devices   Wed, Jul 14    After the Bell     0.09
AAPL   Apple Computer, Inc.Wed, Jul 14    -----N/A-----      0.15
ASML   ASML Holdings NV    Wed, Jul 14    -----N/A-----      0.15
BAC    Bank of America CorpWed, Jul 14    -----N/A-----      1.74
CEC    CEC Entertainment   Wed, Jul 14    After the Bell     0.39
CYN    City Natl Corp      Wed, Jul 14    After the Bell     1.02
CNET   CNET Networks       Wed, Jul 14    After the Bell    -0.01
CCK    CROWN HOLDINGS INC  Wed, Jul 14    After the Bell     0.28
DRL    Doral Finl          Wed, Jul 14    -----N/A-----      0.91
GENZ   Genzyme Corp        Wed, Jul 14    -----N/A-----      0.41
HDI    Harley-Davidson     Wed, Jul 14    Before the Bell    0.75
IFIN   Invest Finl Serv    Wed, Jul 14    After the Bell     0.48
MOGN   MGI Pharma          Wed, Jul 14    Before the Bell    0.05
MTG    MGIC Investment CorpWed, Jul 14    Before the Bell    1.27
PPDI   Pharm Product Dvlp  Wed, Jul 14    After the Bell     0.39
PP     Prentiss Properties Wed, Jul 14    -----N/A-----      0.76
QLGC   QLogic              Wed, Jul 14    After the Bell     0.36
RI     Ruby Tuesday        Wed, Jul 14    After the Bell     0.46
SNDK   SanDisk Corp.       Wed, Jul 14    After the Bell     0.30
STN    Station Casinos     Wed, Jul 14    Before the Bell    0.49
TFX    Teleflex Incorp     Wed, Jul 14    After the Bell     0.88
NYT    New York Times Co   Wed, Jul 14    Before the Bell    0.50
WWW    Wolverine Wrld Wde  Wed, Jul 14    Before the Bell    0.27

------------------------- THUSDAY -----------------------------

ATR    AptarGrp            Thu, Jul 15    After the Bell     0.62
BRE    BRE PROPERTIES INC  Thu, Jul 15    After the Bell     0.57
CSL    Carlisle Co         Thu, Jul 15    Before the Bell    1.08
C      CitiGrp Inc.        Thu, Jul 15    Before the Bell    0.97
CBCF   Citizens Banking    Thu, Jul 15    -----N/A-----      0.42
CMA    Comerica Incorp     Thu, Jul 15    Before the Bell    0.93
CBSS   Compass Bancshares  Thu, Jul 15    -----N/A-----      0.70
CY     Cypress Semicon     Thu, Jul 15    Before the Bell    0.23
DJ     Dow Jones & Co Inc. Thu, Jul 15    Before the Bell    0.38
ETN    Eaton               Thu, Jul 15    Before the Bell    1.01
EQT    Equitable Res, Inc. Thu, Jul 15    Before the Bell    0.61
FCS    Fairchild Semicon   Thu, Jul 15    Before the Bell    0.23
FITB   Fifth Third Bancorp Thu, Jul 15    Before the Bell    0.79
GPC    Genuine Parts       Thu, Jul 15    Before the Bell    0.57
GGG    Graco               Thu, Jul 15    After the Bell     0.40
HIB    Hibernia Corp.      Thu, Jul 15    -----N/A-----      0.45
IVC    Invacare            Thu, Jul 15    Before the Bell    0.56
LSTR   Landstar System     Thu, Jul 15    Before the Bell    0.52
MAR    Marriott InterNatl  Thu, Jul 15    Before the Bell    0.61
NCF    Natl Comm Finl Corp Thu, Jul 15    After the Bell     0.45
NFLX   NetFlix.com         Thu, Jul 15    After the Bell     0.13
NOK    Nokia               Thu, Jul 15    -----N/A-----      0.18
PBCT   People's Bank       Thu, Jul 15    -----N/A-----      0.25
PEP    PepsiCo             Thu, Jul 15    -----N/A-----      0.60
PMCS   PMC-Sierra, Inc.    Thu, Jul 15    After the Bell     0.07
PII    Polaris Ind Inc.    Thu, Jul 15    Before the Bell    0.52
PPG    PPG Ind             Thu, Jul 15    Before the Bell    1.08
RMBS   Rambus Inc.         Thu, Jul 15    After the Bell     0.06
RS     Reliance Steel      Thu, Jul 15    Before the Bell    1.54
RDC    Rowan Co, Inc.      Thu, Jul 15    Before the Bell   -0.03
SEIC   SEI Investments     Thu, Jul 15    Before the Bell    0.36
SLM    SLM Corp            Thu, Jul 15    Before the Bell    0.52
LUV    Southwest Airlines  Thu, Jul 15    Before the Bell    0.16
SYK    Stryker             Thu, Jul 15    After the Bell     0.34
TCB    TCF Finl Corp       Thu, Jul 15    Before the Bell    0.88
SSP    The E.W. Scripps Co Thu, Jul 15    Before the Bell    0.98
MNI    The McClatchy Co    Thu, Jul 15    Before the Bell    0.88
TRB    Tribune             Thu, Jul 15    Before the Bell    0.61
UNH    UnitedHealth Grp IncThu, Jul 15    Before the Bell    0.92
VLY    Valley Natl Bancorp Thu, Jul 15    -----N/A-----      0.38
WB     Wachovia Corp       Thu, Jul 15    Before the Bell    0.96
WBS    Webster Finl Corp.  Thu, Jul 15    Before the Bell    0.91


------------------------- FRIDAY -------------------------------

CX     CEMEX S.A.          Fri, Jul 16    -----N/A-----      0.83
DPH    Delphi              Fri, Jul 16    Before the Bell    0.28
ELUX   Electrolux AB       Fri, Jul 16    -----N/A-----      1.35
HAS    Hasbro, Inc.        Fri, Jul 16    Before the Bell    0.08
HBAN   Huntington Bancshrs Fri, Jul 16    Before the Bell    0.42
KEY    KeyCorp             Fri, Jul 16    Before the Bell    0.57
NCC    Natl City           Fri, Jul 16    Before the Bell    0.69
NAP    Natl Processing, IncFri, Jul 16    Before the Bell    0.25
UCBH   UCBH Holdings, Inc. Fri, Jul 16    -----N/A-----      0.40
GWW    W.W. Grainger       Fri, Jul 16    -----N/A-----      0.69
WL     Wilmington Trust    Fri, Jul 16    Before the Bell    0.54


----------------------------------------------
Upcoming Stock Splits In The Next Two Weeks...
----------------------------------------------

Symbol  Co Name              Ratio    Payable     Executable

URBN    Urban Outfitters Inc      2:1      Jul   9th   Jul  12th
SLXP    Salix Pharms              3:2      Jul  12th   Jul  13th
MGPI    MGP Ingredients           2:1      Jul  15th   Jul  16th
CCFH    CCF Holding Co            3:2      Jul  15th   Jul  16th
BLUD    Immucor, Inc              3:2      Jul  16th   Jul  19th
KNGT    Knight Transportation Inc 3:2      Jul  20th   Jul  21st
CWTR    Coldwater Creek Inc       3:2      Jul  23rd   Jul  26th


--------------------------
Economic Reports This Week
--------------------------

The Q2 Earnings Season is finally here and hits full steam this
week.  On top of earnings we get a wave of economic data this
week.  Tuesday brings the Retail sales numbers.  Thursday and
Friday are packed with a number of reports but headlining the
week will be the PPI, CPI, NY Empire state index and Philly Fed
report.


==============================================================
                       -For-

----------------
Monday, 07/12/04
----------------
Trade Balance (BB)         May  Forecast: -$48.0B  Previous:  -$48.3B
Treasury Budget (DM)       Jun  Forecast:  $14.4B  Previous:   $21.2B


-----------------
Tuesday, 07/13/04
-----------------
Export Prices ex-ag. (BB)  Jun  Forecast:     N/A  Previous:     0.2%
Import Trices ex-oil (BB)  Jun  Forecast:     N/A  Previous:     0.4%
Retail Sales (BB)          Jun  Forecast:   -0.5%  Previous:     1.2%
Retail Sales ex-auto (BB)  Jun  Forecast:    0.3%  Previous:     0.7%


-------------------
Wednesday, 07/14/04
-------------------
None


------------------
Thursday, 07/15/04
------------------
Initial Claims (BB)      07/09  Forecast:    333K  Previous:     310K
Business Inventories (BB)  May  Forecast:    0.5%  Previous:     0.5%
PPI (BB)                   Jun  Forecast:    0.2%  Previous:     0.8%
Core PPI (BB)              Jun  Forecast:    0.2%  Previous:     0.3%
NY Empire State Index (BB) Jul  Forecast:    28.0  Previous:     30.2
Industrial Production (BB) Jun  Forecast:    0.1%  Previous:     1.1%
Capacity Utilization (BB)  Jun  Forecast:   77.7%  Previous:    77.8%
Philadelphia Fed (DM)      Jul  Forecast:    25.3  Previous:     28.9


----------------
Friday, 07/16/04
----------------
CPI (BB)                   Jun  Forecast:    0.3%  Previous:     0.6%
Core CPI (BB)              Jun  Forecast:    0.2%  Previous:     0.2%
Mich Sentiment-Prel. (DM)  Jul  Forecast:    97.0  Previous:     95.6


Definitions:
DM=  During the Market
BB=  Before the Bell
AB=  After the Bell
NA=  Not Available


======================================================
  Trading Ideas
======================================================

This section contains stocks that meet criteria which may make
them of interest to long and short side traders.  These are not
recommendations, nor have they been reviewed by PremierInvestor
editors for investment potential.  However, each of them has
technical and fundamental characteristics that make them worthy
of further review by traders and investors looking for fresh ideas.
New stocks will appear daily following the market close.

Value Plays With Bullish Signals
---------------------------------
Ticker  Company Name               Close     Change

TOT     Total Sa (ADS)             99.80    +1.09
BP      BP Plc                     55.10    +0.82
GD      General Dynamics Corp     100.90    +0.64
AET     Aetna Inc New              84.97    +1.20
ACE     Ace Ltd                    41.93    +0.31


---------------------------------------
Breakout to Upside (Stocks $5 to $20)
---------------------------------------

None


---------------------------------------
Breakout to Upside (Stocks over $20)
---------------------------------------

KSS     Kohl's Corp                43.75    +0.10
JCP     J.C. Penney Company Inc    38.43    +0.31
SNN     Smith & Nephew Plc (ADS)   57.82    -0.18
CKFR    Checkfree Corp             31.88    +1.08
ISCA    Internat Speedway Corp A   53.63    +1.92


-------------------------------------------
Breakout to Downside (Stocks over $20)
-------------------------------------------

EBAY    Ebay Inc                   83.78    +0.13
DNA     Genentech Inc              51.35    -0.65
YHOO    Yahoo! Inc                 30.11    +0.03
SAP     SAP Ag (ADS)               40.04    +2.08
COST    Costco Wholesale Corp      40.20    +0.04


-----------------------------------------
Recently Overbought With Bearish Signals (Stocks over $20)
-------------------------------------------

CINF    Cincinnati Financial Cp    43.37    +0.40
GYI     Getty Images Inc           56.10    -1.55
NVR     NVR Inc                   470.90    +0.40
CEPH    Cephalon Inc               50.32    -1.43
BYD     Boyd Gaming Corp           25.76    +0.05



=================================================================
To stop receiving this PremierInvestor.net Newsletter,
send email to Contact Support
=================================================================
DISCLAIMER
=================================================================

This newsletter is a publication dedicated to the education
of stock traders. The newsletter is an information service
only. The information provided herein is not to be construed
as an offer to buy or sell securities of any kind. The
newsletter picks are not to be considered a recommendation
of any stock but an information resource to aid the investor
in making an informed decision regarding trading in stocks. It
is possible at this or some subsequent date, the editors and
staff of PremierInvestor.net may own, buy or sell securities
presented. All investors should consult a qualified professional
before trading in any security. The information provided has
been obtained from sources deemed reliable but is not
guaranteed as to accuracy or completeness. PremierInvestor.net
staff makes every effort to provide timely information to its
subscribers but cannot guarantee specific delivery times due to
factors beyond our control.

Please read our disclaimer at:
http://www.optioninvestor.com/page/oin/aboutus/disclaimer.html

*****************************************************************
ADVERTISING INFORMATION

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Option Investor Inc is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed.

Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.

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